How to we calculate our investment decision by formula .

1. I wouldlike toopenacantin namedD.C.R.Ccantin
Cost details:
Advance payment=600,000tk
Life time=five years
Setupcost (ChairandTable) =200,000tk
Dailysells=27000tk
Operatingcost=18,300tk
Staff salaryper day= 4,200tk
Netincome perday=4,500tk
Average netincome permonth=4500×22=90000tk
(cantinisopen22days per month)
Salvage value of ChairandTable =50000tk
period
Permonthnet
income
Payback
period presentvalue discountedpayback
0 -800000 -800000 -800000 -800000
1 90000 -710000 89589.38497 -710410.615
2 90000 -620000 89180.64333 -621229.9717
3 90000 -530000 88773.76653 -532456.2052
4 90000 -440000 88368.74605 -444087.4591
5 90000 -350000 87965.57344 -356121.8857
6 90000 -260000 87564.24026 -268557.6454
7 90000 -170000 87164.73811 -181392.9073
8 90000 -80000 86767.05865 -94625.84866
9 90000 10000 86371.19356 -8254.655102
10 90000 100000 85977.13456 77722.47946
11 90000 190000 85584.87341 163307.3529
12 90000 280000 85194.40191 248501.7548
13 90000 370000 84805.71189 333307.4667
14 90000 460000 84418.79522 417726.2619
15 90000 550000 84033.64382 501759.9057
16 90000 640000 83650.24964 585410.1553
17 90000 730000 83268.60464 668678.76
18 90000 820000 82888.70086 751567.4608
19 90000 910000 82510.53034 834077.9912

2. 20 90000 1000000 82134.08519 916212.0764
21 90000 1090000 81759.35753 997971.4339
22 90000 1180000 81386.33952 1079357.773
23 90000 1270000 81015.02336 1160372.797
24 90000 1360000 80645.40129 1241018.198
25 90000 1450000 80277.46558 1321295.664
26 90000 1540000 79911.20854 1401206.872
27 90000 1630000 79546.62251 1480753.495
28 90000 1720000 79183.69986 1559937.195
29 90000 1810000 78822.433 1638759.628
30 90000 1900000 78462.81438 1717222.442
31 90000 1990000 78104.83648 1795327.278
32 90000 2080000 77748.49182 1873075.77
33 90000 2170000 77393.77294 1950469.543
34 90000 2260000 77040.67243 2027510.216
35 90000 2350000 76689.1829 2104199.399
36 90000 2440000 76339.297 2180538.696
37 90000 2530000 75991.00741 2256529.703
38 90000 2620000 75644.30686 2332174.01
39 90000 2710000 75299.18809 2407473.198
40 90000 2800000 74955.64389 2482428.842
41 90000 2890000 74613.66707 2557042.509
42 90000 2980000 74273.25048 2631315.759
43 90000 3070000 73934.387 2705250.146
44 90000 3160000 73597.06956 2778847.216
45 90000 3250000 73261.29108 2852108.507
46 90000 3340000 72927.04456 2925035.552
47 90000 3430000 72594.323 2997629.875
48 90000 3520000 72263.11944 3069892.994
49 90000 3610000 71933.42696 3141826.421
50 90000 3700000 71605.23867 3213431.66
51 90000 3790000 71278.54771 3284710.207
52 90000 3880000 70953.34723 3355663.555
53 90000 3970000 70629.63045 3426293.185
54 90000 4060000 70307.39058 3496600.576
55 90000 4150000 69986.6209 3566587.196
56 90000 4240000 69667.3147 3636254.511
57 90000 4330000 69349.46529 3705603.976
58 90000 4420000 69033.06604 3774637.042
59 90000 4510000 68718.11033 3843355.153
60 140000 4650000 106407.1424 3949762.295

3. Finding:
Cost of capital =5.50%
IRR=11.23244%
Paybackperiod= 11 Months and 27 days
Discountedpaybackperiod =1 yearsand 3 days
NPV=3949762.295tk
If I investinsonali Bank,thenthe Bankprovides5.50% interestrate.Thisisriskfree rate or my cost of
capital.